HDFC SL Young Star Plan is a unit linked insurance plan (ULIP) for the benefit of a child, where the parent is the Life Insured. In case of death of the Life Insured (the parent), the nominee (the child) would get Sum Assured or Fund Value, whichever is higher in a Lump Sum for immediate expenses and the policy will terminate. However, the future premiums would be paid by the insurance company to the beneficiary till the end of the policy tenure for expenses like school fees, etc. But the most important thing to remember is that the risk of investment of premiums is to be borne by the policyholder. There is no guarantee on the returns in such policies.

ICICI Prudential Smart Kid Regular Premium Plan is Traditional Participating Endowment plan for the benefit of the child where the parent’s life is insured. If the parent dies within the policy tenure, the Sum Assured is paid to the nominee to address the immediate financial requirements and the future premiums are waived off and paid by the insurer such that the Maturity Benefit is paid as and when due. This is not a unit-linked plan and hence the returns are guaranteed.